Can I get LMI refunded if I refinance?

Possibly. If you refinance within the first few years, you may be entitled to a partial refund of LMI from some insurers. Check your loan documents or contact your lender.

Is LMI tax deductible?

For investment properties, LMI can be claimed as a tax deduction over five years or the term of the loan, whichever is shorter. It's not deductible for your home.

How much is LMI on a $600,000 property with 10% deposit?

A $60,000 deposit on $600,000 leaves a $540,000 loan at 90% LVR, and this calculator estimates about $6,480 of LMI — an indicative 1.20% of the loan for that band. The band matters more than the dollar figure: with $59,000 saved instead, the same purchase sits just over 90% LVR, where the indicative rate steps up to 2.80% and the premium to about $15,148. Premiums are set by the insurer and the lender, so treat any figure here as indicative and confirm yours with the lender.

LMI Calculator

Estimate Lenders Mortgage Insurance when your deposit is under 20%

LMI is usually required when you borrow more than 80% of the property value. This calculator gives an indicative premium; actual premiums depend on your lender and insurer.

Loan & Deposit

Enter the property price and your deposit. LMI is usually required when borrowing more than 80% (deposit under 20%).

Property price ($)

Deposit ($)

Deposit is 16.7% of property price

LMI Estimate

Loan amount$500,000

LVR83.3%

LMI premium (indicative)$3,500

Based on an indicative rate of 0.70% for your LVR band. Neither Australian insurer publishes its premium rates, so this is an estimate rather than a quote — real premiums are set by the lender and its insurer (Helia, formerly Genworth, or QBE) and also vary with loan size and whether you are buying to live in or to rent out.

LMI is a one-off premium that protects the lender, not you. You may be able to capitalise it into the loan (subject to LVR limits).

How to Use This Calculator

1Enter the property purchase price
2Enter your deposit amount
3The calculator shows your LVR (loan-to-value ratio) and estimated LMI premium
4If your LVR is 80% or below, no LMI is required

What Is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is a one-off insurance premium that protects the lender — not you — if you default on your home loan. It's required when you borrow more than 80% of the property value (LVR above 80%).

LMI allows you to buy a home with a smaller deposit, but it adds to your upfront costs. The premium can be paid upfront or added to your loan (capitalised), though adding it to your loan means you pay interest on the LMI amount.

Factors That Affect LMI Cost

Loan-to-value ratio (LVR): The higher your LVR, the more LMI costs. An LVR of 95% costs significantly more than 85%.
Loan amount: Larger loans attract higher premiums. The premium is a percentage of the loan amount.
Lender and insurer: Different lenders use different insurers, and premiums vary. Always compare.
First home buyer schemes: The First Home Guarantee scheme lets eligible buyers purchase with 5% deposit without paying LMI.

How to Avoid or Reduce LMI

•Save a 20% deposit to avoid LMI entirely
•Check if you're eligible for the First Home Guarantee scheme (no LMI with 5% deposit)
•Use a family guarantee — a parent can use equity in their home as security
•If you must pay LMI, compare lenders as premiums vary

Frequently Asked Questions

Official Sources

First Home Guarantee (Housing Australia)

Estimates only. Not financial or tax advice. Full disclaimer for your rights and our limitations of liability.

About this calculator

This calculator exists to show you the arithmetic. It applies published Australian rates, thresholds and formulas to the numbers you enter and shows the working, so you can check it. That is all it does — it produces a number and describes what the number is. It does not recommend anything and it holds no opinion about any financial product.

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.

This calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Before you make a financial decision, consider obtaining advice from someone who holds an Australian Financial Services Licence. We do not, and we cannot advise you.

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About this calculator

What can move this result

It only knows the figures you type in. Offsets, deductions, prior-year losses, other income, your partner's position and anything you have not entered are not in the result, and any of them can move it a long way.
Rates and thresholds change, sometimes mid-year and occasionally with retrospective effect. Each calculator shows the financial year and the verification date it is working from — outside that year the result is wrong rather than approximate.
Assumptions are set to a reasonable default and every non-statutory one can be changed. Defaults are not predictions, and a small change to a growth or inflation assumption compounds into a large change in a long projection.
Where a result reaches two or more years into the future it is shown in today's dollars as well as future dollars, because a future-dollar figure overstates what the money will actually buy.
It is a generic calculator. It is not built around any particular product, it does not compare the market, and it cannot tell you whether a product is suitable for you.